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By T J. M Harvey

This paper gives an overview of the ASHRAE LibHuAirProp, CoolProp and REFPROP software packages. These packages were predominantly developed for heating, refrigerating and air conditioning engineers and the refrigeration and steam power industries, although CoolProp and REFPROP also cover combustible gases. The main aim of this paper is to highlight the existence capabilities and status of the different packages and where they can be used. The paper gives typical examples of the use of these software packages, specifically as Excel add-ins, and provides a comparison of results of typical mine psychometric and gas drainage calculations using the packages and more traditional ventilation and gas drainage calculation methods. The paper also introduces a hybrid method that improves accuracy compared to traditional methods. In typical mine situations, the use of software packages is probably not required; however, with the increasing accuracy of instruments, potential greenhouse emission costs and the sale of mine gas, more accurate measurements and calculations can potentially save (or make) significant sums of money.CITATION:Harvey, T J M, 2015. The use of psychometric, thermodynamic and transport property software in mine ventilation and gas drainage calculations, in Proceedings The Australian Mine Ventilation Conference, pp 201–210 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 31, 2015

By Blaisdell J. L, MacPherson G

The present communication records the results of a research investigation conducted in the Porcupine Gold Mines in Timmins, Onto. Soon after silicosis became a compansable disease in Ontario under the Workmen's Compensation Act in 1926, the attention of mine operators and physicians was drawn sharply to the prevalence and importance of this condition in the mining industry. A number of examining centres were established in Northern Ontario by the Workmen's Compensation Board, and the yearly X-ray examination of miners was made compulsory.Although working conditions were soon improved, the mining industry realized that they were confronted by a problem demanding basic research for its final solution. The late Sir Frederick Banting had, for a number of years, been interested in silicosis, and it was upon his suggestion that an experimental investigation was undertaken at the McIntyre-Porcupine Mines Ltd., Schumacher, Ont., in November, 1932. A preliminary report of this investigation was published in 1937 by Denny, Robson and Irwin and a further report by the same authors in 1939.Accepting the theory that silica exerts its injurious effect upon animal tissue through a slow transformation into silicic acid in the presence of body fluids; these authors assumed that if the solubility of the silicious material retained in the lung could be sufficiently reduced, the usual fibrotic response would be modified or would not occur. A search was therefore undertaken for some non-toxic compound that would fulfil this purpose. After investigating ma:qy substances, Denny and Robson discovered in 1936 that the presence of small amounts of aluminum powder almost completely inhibited the solubility of silicious material in vitro. An intensive study of the mechanism involved later showed that the reduction in solubility was due chiefly to a coating of the silica particle with a thin film of a gelatinous hydrated alumina which on drying formed the crystalline alpha aluminum monohydrate boehmite (AI203.H20). The presence of this absorbed layer on the surface of the quartz was indicated by -staining it with aurin (ammonium salt of aurin tricarboxylic acid) and proved by Germer and Storks by means of electron diffraction patterns.Inhalation experiments with animals were at once begun, using pure quartz dust with and without aluminum powder. (See original communications.) These observers showed that while typical silicosis was produced in about 5 months in the control animals receiving silica dust alone, the...

Jan 1, 1945

By N Redwood, N Fowkes, A Bassom, S Durkin

"It is well known that from time-to-time a vehicle will interact with a bund or windrow and often the barrier is insufficient to safely arrest that vehicle. The result of such an incident is often catastrophic. Regulations around the requirement for edge protection near pit edges vary between jurisdictions. Generally in Australia regulations tend to be around placing the responsibility on the mine operator to provide ‘adequate’ or ‘appropriate’ edge protection. Guidelines often place a minimum height of bund at between half and two-thirds the diameter of the largest tyre on-site.Safescape has identified the opportunity to improve safety in open pit edge protection and is currently developing the Edge Protector (EP) product. The EP is designed to create a vertical front face to a conventional broken rock safety bund. The fundamental premise of the product is that by creating a vertical front face to the bund, trucks cannot easily drive up over the bund and instead have to push through the rock to get to the other side.In addition to providing a safer system for arresting vehicles, the vertical front face also means that extra space is made available in the haul road. This can either be used to facilitate larger trucks or when designing a new mine, with an increase in overall pit slope.This paper outlines the research and development of a new edge protection product. Discussion will include project objectives, economic incentive for mines to apply the system, mathematical analysis of the truck/bund interaction and physical testing of the product.Citation:Durkin, S, Fowkes, N, Redwood, N and Bassom, A, 2016. Innovative Approach to Open Pit Edge Protection, in Proceedings Ninth AusIMM Open Pit Operators' Conference 2016, pp 138–149 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 15, 2016

The object of this paper is to give an insight into various metallurgical operations involved in the making and shaping of steel for shipbuilding at the Newcastle plants of the Broken Hill Proprietary Co. Ltd., Commonwealth Steel Co. Ltd. and the Port Kembla plant of Australian Iron and Steel Ltd. Whilst not steelmakers, inasmuch as their processes start with semi-finished. steel supplied by the Steelmaker, the plants of Stewarts and Lloyds (Aust.) Pty. Ltd. and their associate company, British Tube Mills, Rylands Bros. (Aust.) Pty. Ltd. and the Newcastle and Kembla plants of John Lysaghts (Aust.) Pty. Ltd. make substantial contributions to the Australian shipbuilding industry, principally by way of boiler tubing and wires for welding rods and sheet steel, including special silicon lamination sheet for electrical motors.THE MAKING OF STEELThe making of iron and steel began as an accident, slowly developed as an art and has not yet become an exact science. The iron age dawned on the day when, by chance, man's primitive ancestor built up the wall of his fire with ironstone. In the ashes of the fire he found pieces of sponge iron from which he hammered out the first sample' of wrought iron. For many centuries iron ·was manufactured in bloomeries and occasionally, when the temperature was excessive, the iron combined with some carbon and steel was produced. But it was not till '1740 that steel was manufactured under controlled conditions. In that year Huntsman invented the crucible process which held undisputed sway for over a 100 years until in 1856 the invention of the Bessemer process revolutionised the whole industry.From then on, rapid progress was made. The Siemens...

Jan 1, 1951

Large deposits present computational challenges to todayÆs commercial orebody modelling systems that are based on conventional block models. We describe a system that is specifically engineered to model and visualise large deposits. Central to the system is linear octree encoding of conventional block models and real-time conversion of three-dimensional (3D) meshes to linear octrees. We provide both methodological treatment and practical experience in implementing such a system. A commercial implementation is also presented to demonstrate the validity of the approach.

Sep 26, 2011

By Bell I. F

In 1985, ZC Mines (now Pasminco South) had been unprofitable for some years due to a combination of high operating costs, low metal prices, low head grade and an aging and inadequate mining infrastructure. However, the resource of metal in the ground was still of world class, even after some 80 years of mining. A major study, which was to be of two years duration, was therefore commenced to establish a practical and profitable long term mining strategy and to cost the infrastructure options needed for its support and thus form the justification for a capital expenditure program to take the mine profitably into the 21st century and its second century of operation. This paper discusses the rationale behind the methodology adopted and the nature of the results achieved in one aspect of the study - the determination of the mineable resource and the relationship between the head grade/quantity of the economically mineable resource and the variables of cut-off grade, cost structure, annual production rate and metal prices/exchange rates. The basis of the study was the designing of some 5000 scopes to mine out the entire resource for a range of cut- off grades and the assembly of the detailed physical data thus obtained in a stope-by-stope data base for financial and other analysis. Those scopes which were shown to be economically mineable were then scheduled for two optimum annual production/cut-off grade/metal price combinations to provide life-of-mine cost and value of production cash flows.

Jan 1, 1992

By A Scott, S Kanchibotla, J Segui

The æMine to MillÆ concept is not new. In fact, it is the underlying objective of every mine. Unfortunately, in many operations the management structure and reporting systems have created independent æbusinessesÆ within the overall mining enterprise. This has created incentives to optimise the performance of each component of the operation rather than the enterprise as a whole. The Mine to Mill Conference organised by The AusIMM in October 1998 documented a number of case studies where run of mine ore was not presented to the mill in the best possible form for subsequent stages of comminution and processing. A number of examples were quoted where modest expenditure in the mine had a very significant impact on downstream process efficiency and hence costs. Examples included:the minimisation of fines in the mining and handling of iron ore; the management of fines in blasting and crushing for a copper heap leach operation; the control of blast damage, mining recovery and dilution in open cut coal operations; and the optimisation of mine fragmentation to increase mill throughput in gold and copper operations. The latter topic has been trialed at a number of mines and is referred to as æMine to MillÆ fragmentation. A number of æMine to MillÆ type investigations have been reported in the literature including Pease et al, Simkus and Dance, Nielsen, Scott et al, Kojovic et al, Kanchibotla et al, Bulow et al and Hawkes from the 1998 Mine to Mill Conference. In addition, a number of studies are in progress or the results have yet to be published. These studies have demonstrated the feasibility of obtaining the data required to characterise the breakage behaviour of ores and to model the impact of changes to blasting practices on process efficiency. Characterising the breakage behaviour of ores is a vital step in the management of fragmentation and comminution in mines. The characteristics of importance to fragmentation fall outside the parameters conventionally required to describe the economic geology of a deposit. æMine to MillÆ optimisation of fragmentation means that the mining engineer needs information from the geologist in order to be able to help the metallurgist. Providing this information requires close interaction between these groups.

Jan 1, 2000

By R Ballantyne, M Adams

Time Usage Models, used as a basis for calculating performance indicators for mobile mining equipment, have developed from very simple to very sophisticated models. This development has paralleled the increased collection and analysis of production data that itself has been enabled by the evolution of underground voice and data communications along with the relevant information systems. A Time Usage Model divides the hours that equipment is (or is not) used into standard components, by a hierarchical breakdown, so that measures of productivity can be used to compare performance of both people and equipment. The calculation of equipment availability, and thus the underlying Time Usage Model, has always been an extremely emotive topic as different groups use time usage information for different purposes. The direct link between measuring performance Key Performance Indicators (KPI) calculated from these models and employee rewards impacts upon the workforce. This paper discusses the conflict in use by various stakeholders and proposes ways to address some of the more contentious issues each supported by case studies. The simple status code functionality used by early systems has proven inadequate, leading to the evolution of “work-arounds”. These workarounds have become the norm and unfortunately have become embedded in the next generation of models and the information systems that incorporate them. This paper contends that the industry should stop building Time Usage Models to accommodate shortcomings in proprietary systems, but rather collaborate with suppliers to develop innovative methods to deal with the fundamental requirements. There are many points of differentiation that are not clear-cut. Pitfalls are discussed as well as threats to success. A framework of rules is developed as guidelines for how a Time Usage Model should be developed and applied. This will hopefully stimulate the on-going discussion as to how Equipment Availability and other components of the model should be calculated.

Mar 15, 2021

By R Miller

The enrichment of magnetite to haematite and haematite-goethite leads to a coincident magnetic low and gravity high within the banded iron formation. Palaeochannel deposits of pisolitic limonite can be expected to provide a relative magnetic high and gravity low in a sinuous geometry. Detrital iron deposits of conglomerate, scree or ‘canga’ might have indistinct magnetic response but will usually have a relative gravity high.These signatures provide clear discriminators detectable by a joint gravity and magnetic survey.The combination of airborne gravity gradiometry and magnetometry is particularly powerful in detecting and discriminating targets, as well as mapping lithologies and structure, across a wide variety of iron ore deposit styles. It provides detection capabilities in a platform capable of rapid, complete coverage with minimal access issues. This approach has been used in FALCON™ airborne surveys for iron ore exploration in the Great Lakes, USA; the Middleback Ranges, South Australia; and the Hamersley Basin, Western Australia.The complex magnetic properties of iron formations (particularly remanence, anisotropy and depth of weathering) prevent this approach from being simple. The use of vector residual magnetic intensity (VRMI), calculated from the measured total magnetic intensity (TMI), assists by reducing the complexity due to the different directions of the remanent and induced magnetic fields.Estimations of the density to magnetisation ratio via the pseudo-lithology calculated from the VRMI and gravity gradients provide a useful method of capturing the discriminatory power of joint magnetic and gravity gradient data.

Jul 11, 2011

By T Salles, G Duclaux, E R. Ramanaidou

In a continental environment, sediment mobilisation, dispersion and deposition are mainly controlled by mass gravity and streamflow processes. Alluvial sedimentary systems have an important economic value because of their capacity to host mineral resources. In the Hamersley Province, alluvial iron deposits (including the well-known detrital iron deposits and channel iron deposits) play an increasing role on the commodity market. Alluvial deposits exploration is challenging and generally involves geomorphologic and stratigraphic field studies, as well as expensive exploratory surface sampling and drilling. We applied a new surface processes modelling technique to investigate iron rich material, ie the erosion product of bedded iron formations -dispersion in the Hamersley Province. LECODE is a 3D-parallel surface processes forward modelling code designed to compute surface flow and solve erosion, transport and sedimentation on the geological time scale. The code offers new quantitative ways to better understand how sedimentary deposits develop in intra-continental and channel environments. Here we show that our integrated forward model is capable of opening a window to the construction of sedimentary architectures, including facies distribution, deposit thickness and development of heterogeneities such as mineral traps over the modelled domain. The model results represent 1 Ma of surface evolution and are validated through comparison to published paleovalleys map and known occurrences of iron ore deposits. This numerical modelling approach allows for the first time to track alluvial materials from source to sink through time, test existing geological models and faithfully reproduce the first order distribution of alluvial iron deposits in an area of interest. This work strongly suggests the presence of iron rich alluvial deposits reserves under cover, in unexplored detrital fans in the Fortescue Valley. This method, potentially coupled with sediment geochemistry and basin analyses studies, has the potential to maximise alluvial iron deposits exploration success, while reducing exploration cost and associated environmental impact.CITATION:Duclaux, G, Salles, T and Ramanaidou, E R, 2013. Alluvial iron deposits exploration using surface processes modelling - a case study in the Hamersley Province (Western Australia), in Proceedings Iron Ore 2013 , pp 75-80 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 12, 2013

By A K. B Chigwada

Mining organisations grapple with the same problems year after year, wasting incredible amounts of time and money. According to estimates from the International Labour Organization (ILO), over one million work-related deaths occur annually, and hundreds of millions of workers suffer from workplace accidents and occupational exposure to hazardous substances worldwide. Many accident reports cite human failure as a primary cause (Busse and Johnson, 1998). The workers at the Bhopal chemical plant pumped methyl isocyanate into a leaking tank (Morehouse and Subramaniam, 1986). On 3 December 1984, more than 40 tons of methyl isocyanate gas leaked from a pesticide plant in Bhopal, India, immediately killing at least 3800 people and causing significant morbidity and premature death for many thousands more. The company involved in what became the worst industrial accident in history immediately tried to dissociate itself from legal responsibility (Broughton, 2005). Australia is not spared from safety problems either (Lucas, 2022). The ILO Convention 176 (1995) as a response provides that national law should inter alia provide for the supervision of safety and health in mines; the inspection of mines by designated inspectors of the competent authority; the procedures for reporting and investigating of fatal and serious accidents; the compilation and publication of statistics on accidents, occupational diseases and dangerous occurrences; the competent authority to suspend or restrict mining activities on safety and health grounds until conditions giving rise to the suspension are addressed; and worker consultation on matters related to safety and health in mines. This has assisted in getting enough data to define the magnitude of the problem to the mining sector.

Apr 16, 2024

By M Nehring, E Topal

Nowadays mining projects are seeking new versions of evaluation that are based on the flexibility in the project. Real option valuation (ROV) is one of the modern evaluation methods that provides a tool to adapt and revise mining projects under uncertainty and future variable movements. Most evaluation approaches simply assume that some variables are fixed, such as production rate, variable cost, fixed cost and lifetime of project. The first section of this paper reviews a comprehensive study of ROV in mining projects. The paper then introduces a new model that solves problems where previous methods lacked. The new method endeavours to find maximum mining project value by adding total cost as a function of production rate into ROV. The second section has been applied to a new model on the Century zinc mine in north-west Queensland, thus illustrating the future overview of that mine. The new version of ROV gave a significant positive value for the Century Mine, when the closure and reopening options where available throughout the life of the mine. Consequently, the new method evaluates real options to add value to mining projects, maximising projectÆs value, estimating cost function, optimising production rates and offers opportunities in projects to amplify gains or to mitigate losses.

Jan 1, 2009

The Mt Lyell Mine at Queenstown, Tasmania was re-opened in 1995 by Copper Mines of Tasmania Pty Ltd, a wholly owned subsidiary of Mt Lyell Mining Co Ltd. The re-opening followed over 100 years of copper and gold mining at Mt Lyell. Major changes in practice were implemented across the site. Preventing further damage to an already disturbed environment was a major priority. Sublevel caving, at a lower cut-off grade, replaced open stoping for the deep underground mining. Development and later stoping are handled by a contractor, National Mine Management Pty Ltd, in the largest underground contract awarded at the time. Large scale sublevel caving was new to Mt Lyell and not widely practised in Australia, requiring studies and systematic development of the method, particularly in drilling and blasting. Rehabilitation and upgrading of mine infrastructure have been and will continue to be a challenge. The mine has, since 1995, returned to being a stable producer with potential for growth.

Jan 1, 1998

By S Thomson, M Lovitt, T Purvis, C te Kloot, T Nguyen, Z Liu

Ernest Henry Mine (EHM), located in north-western Queensland, is an underground copper/gold sublevel caving operation currently producing over 6 Mt/a of ore. The mass mining method of sublevel caving (SLC) used at EHM involves systematically blasting a series of uphole rings in parallel ore drives and drawing the broken ore using a top-down approach. Each ore drive contains multiple precharged rings to prevent having to charge in close proximity to the brow of the previously fired ring; however, the current initiation system still involves ‘hooking up’ all detonator lead cords of the first precharged ring. The unstable nature of a rill and working close to a brow presents hazards to personnel completing the hook-up process. There is also a business risk of ore loss when damaged ground support completely prevents access to the next precharged ring. If the hook-up step could be eliminated, the risk to personnel and the business would be significantly reduced.EHM engaged Orica Mining Services in 2016 to trial their WebGenTM 100 – wireless electronic blasting system (WEBSTM) for the first time in an underground mining environment. Having successfully signal-tested the equipment, two test holes were initiated, followed by a single production ring and then multiple production rings. In total, 30 production rings were successfully fired underground at EHM in 2017. To do this, WEBSTM was successfully integrated into EHM’s current charging and firing process, resulting in no business delays or loss to production. None of the 30 rings required hooking up and all were initiated from the surface with no personnel underground. A high level of ownership from all personnel involved ensured the trial was a success, and provided scope for wireless detonators to be used successfully on a large scale – both at EHM and other sublevel caving operations. WEBSTM is now a proven example of technology that can be used to improve safety in the mining industry, through eliminating the need for personnel to work in hazardous areas.CITATION:te Kloot, C, Liu, Z, Purvis, T, Thomson, S, Lovitt, M and Nguyen, T, 2017. Improving safety through technology – Orica wireless electronic blasting system trials at Ernest Henry Mine, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 39–50 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

A comparison is made between elementary block estimation techniques and the optimal methods of geostatistics using data from an Australian deposit. Considerable improvement in the estimates are obtained by using the optimal technique in this case.

Jan 1, 1975

By G Britton, P Moynagh

As more than a few mines gradually sink under the weight of emails, whiteboards, notice boards and ever more complex spreadsheets, the holy grail of effective short-term interval planning and control in underground mines is as far away as ever. Despite the mining industry investing ever greater amounts in planning and Enterprise Resource Planning systems, short-term plans become ever more complex and rigid. What the industry desperately needs are not more ‘disembodied voices down the speaking tubes’, but flexible and effective planning systems that encourage people to make reasonable commitments to each other so that everyone can work as a coordinated team to complete the work required each shift.One solution to the challenge has emerged. This paper describes the ‘Fewzion’ shift planning and short interval control system which has been developed at Anglo American’s Moranbah North and Glencore’s Oaky Creek coalmines in Central Queensland. Fewzion has drawn on management theory embodied in Management Operating Systems, Lean and Theory of Constraints approaches to continuous improvement to play a key role in both mines achieving record breaking tonnages.In addition to explaining the Fewzion approach, a case study is presented describing how Anglo American’s Moranbah North improved production by 39 per cent in 2014/2015 and won ‘Coalmine of the Year’ two out of the last four years and how Glencore’s Oaky Creek sustainably improved monthly development meters by 34 per cent within two months of implementing Fewzion.CITATION:Moynagh, P and Britton, G, 2017. How a frontline planning and commitment system improves trust, commitment and results in operations, in Proceedings 13th AusIMM Underground Operators’ Conference 2017, pp 235–240 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Oct 16, 2017

The mining of high-grade narrow vein deposits is a predominant field of activity in the precious metal sector. These types of deposits are located throughout the globe and have a significant presence in mining operations. The principle factor that has undermined the profitability and effectiveness of mining such ore zones is the substantial dilution that occurs when blasting with explosives during extraction. In order to minimise ore dilution, the thermal fragmentation mining method enables the operator to extract a narrow mineralised corridor, 30 cm to 1 m wide (according to the true width of the ore vein). By inserting a strong burner powered by diesel fuel and air into a pilot hole previously drilled directly into the vein, a thermal reaction occurs spalling the rock and enlarging the hole to 30 - 100 cm in diameter. This patented method produces highly concentrated ore, resulting in 400 - 500 per cent less dilution when compared to conventional mining methods. The mining method was conceived with the aim of mining ounces, not tonnes. This method of extraction, reduces the environmental impact of mining operations since much smaller quantities of rock are displaced, stockpiled, and treated using chemical agents. The fully mechanised equipment operated by a two-person team, maximises the effectiveness of skilled personnel, increases productivity, and reduces risks of injuries. Important economic benefits are generated for large- and small-scale mining operations alike. For large-scale operations, the mining method increases mining reserves, lowers the cost per ounce, and increases the total profitability of existing mine operations. The method also significantly lowers costs and risks of developing and mining small-scale deposits, requiring less investment capital, shortening the payback period, thus reducing the lending risk.  Combined with a small modular processing unit able to process between 100 - 300 tons per day, the method substantially lowers the financial break-even point for small-scale mining operations in a narrow vein environment. The company has been working with the technology at its Rocmec 1 mining site; results achieved and future developments are discussed.

Jan 1, 2008

By P J. Chapman

Recent catastrophic failures of tailings storage facilities (TSFs) continue to highlight the need for a detailed understanding of failure modes and the defences that are in place within the design to mitigate the failure modes. However, in many cases the instrumentation devices and monitoring approaches selected during operation do not link back to the design defences and inappropriate or redundant instrumentation is often installed. Candidate instruments and monitoring approaches (critical controls) are presented and matched to critical failure modes, with clear linkages to the intent of each instrument/monitoring approach. Commentary on where complementary measurements with independent technology types are recommended to provide greater assurance of trends to the design engineer or TSF owner is also presented. In response to the recent TSF failures, an increasing focus is being placed on instrumentation and monitoring relating to slope instability and safeguarding against the potential for static liquefaction, using a critical state soil mechanics framework. To support selection of appropriate zoning within a stability model, three complementary devices are recommended – vibrating wire piezometers to provide an indication of pore pressure and allow the phreatic surface to be inferred, tensiometers to confirm the presence of unsaturated conditions (and hence low potential for undrained failure) and moisture content sensors to provide an indication of void ratio, and hence state parameter, in saturated zones. The combination of VWPs and tensiometers will provide complementary measurements in the saturated and unsaturated zones, and also provide information on the extent of any near-saturated zones, provided that sufficient instruments are installed.

Jul 1, 2021

By R M. S Watsford, M Davis

In 2015, MMG Limited commenced further action to improve operating margins and establish a blueprint for future growth in the Australian environment. This action was taken in the context of weakening metal prices and high input costs that arose during the Australian minerals boom.MMG was formed in June 2009 following the purchase of the majority of assets of OZ Minerals Limited by China Minmetals Corporation (CMC) through its subsidiary China Minmetals Non-ferrous Metals Co Ltd (CMN).Since formation MMG has been implementing a business model to deliver a standard way of operating. The overarching purpose of the business model is to enable fast integration of acquired assets to realise improved productivity and performance. CMN established MMG as a vehicle to reach their growth targets through further development or acquisition of mineral assets in jurisdictions external to mainland China.The business model is underpinned by the MMG operating model. The operating model defines how MMG is arranged to deliver the company strategy.This paper describes the application of the operating model to the formation of the Australian operations into a single business unit from multiple stand-alone operating sites. The development and impact of the business model on MMG’s performance is also presented.The extension of the operating model to the Australian operations has led to improvement in safety performance, direct costs and productivity. These improvements have been achieved through reducing duplication, simplification of systems and rapid deployment of improvement initiatives.The successful implementation of the operating model to Australian operations strengthens the platform for further growth. Hence, delivering on the aim of the business model.CITATION:Watsford, R M S and Davis, M, 2016. MMG’s Australian operating model – the implementation, successes and learning, in Proceedings International Mine Management Conference, pp 291-302 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Jun 22, 2016

The mining industry is generally regarded as a high risk industry, mainly because of the difficulties in estimating the tonnage and grade of mineral resources, the fluctuations in metal prices, mining problems and other problems which occur with mining in offshore and remote locations, such as appropriation or disruption to supply. As a consequence, finance providers require a high reward from mining projects. In the past two decades, the development of "mega" projects has led to the packaging of the finance becoming more sophisticated. Some would see this move as a measure of the evolution of banking rather than an intrinsic facet of mining finance itself. Project financial managers now require a thorough knowledge of all the financial tools which are available and have to be aware of the funding options so that they can put together a finance package which minimises the cost of the financing with the risk spread adequately between the partners of the financing. The different sources and types of finance for mining projects are described herein along with the factors which determine their costs. To understand the ramifications of financing mining projects, it is essential to appreciate the fundamental difference between debt and equity, which illustrates the importance of gearing. Costs of finance are determined by the interaction of supply and demand forces. Bankers and other financiers have become more adept at isolating a wide selection of risk elements and have devised a formidable range of insurance mechanisms. There is still a lot of money looking for good project risks and if a good project is properly presented and structured, financing can be obtained in today's market.

Jan 1, 1990